If China Is Capable of Producing Either Teddy Bears or Toy

question 123

Multiple Choice

If China is capable of producing either teddy bears or toy trains or some combination of the two, then

• A)China should specialize in the product in which it has an absolute advantage.
• B)it would be impossible for China to have an absolute advantage over another country in both products.
• C)it would be difficult for China to benefit from trade with another country if China is efficient in the production of both goods.
• D)China's opportunity cost of teddy bears is the inverse of its opportunity cost of toy trains.

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Definitions:

Internal Customers

Employees or departments within an organization that rely on others within the same organization for products, services, or information.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental improvements over time, rather than through big, radical changes.

Current Performance

The present level of effectiveness and efficiency with which tasks and goals are being achieved by individuals or organizations.

Total Quality Management

A management approach focused on continuous improvement of processes, products, and services to achieve high quality.